An Act To Encourage Savings through Contributions to Family Development Accounts
Sec. 1. 36 MRSA §5219-VV is enacted to read:
§ 5219-VV. Contributions to family development account reserve funds
Only one credit may be claimed on each annual income tax return regardless of filing status. The credit allowed under this section may not reduce the tax to less than zero and must be applied after allowance for all other eligible credits. A taxpayer who claims a credit under this section may not claim an itemized charitable deduction under section 5125 for the amount of the contribution that qualified for the credit.
This bill creates a tax credit of up to $25,000 for taxpayers who make contributions to family development account reserve funds.